Annual report pursuant to Section 13 and 15(d)

EARNINGS PER SHARE

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EARNINGS PER SHARE
 12 Months Ended
Dec. 31, 2023
Earnings Per Share [Abstract]  
EARNINGS PER SHARE
NOTE 20. EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.
We calculate basic earnings per share (EPS) of common stock by dividing net income attributable to Cummins Inc. by the weighted-average number of common shares outstanding for the period. The calculation of diluted EPS assumes the issuance of common stock for all potentially dilutive share equivalents outstanding, which is calculated using the treasury-stock method for share-based awards. Following are the computations for basic and diluted earnings per share:
  Years ended December 31,
In millions, except per share amounts 2023 2022 2021
Net income attributable to Cummins Inc.  $ 735  $ 2,151  $ 2,131 
Weighted-average common shares outstanding      
Basic 141.7  141.5  144.6 
Dilutive effect of stock compensation awards 1.0  0.8  1.3 
Diluted 142.7  142.3  145.9 
Earnings per common share attributable to Cummins Inc.      
Basic $ 5.19  $ 15.20  $ 14.74 
Diluted 5.15  15.12  14.61 
The weighted-average diluted common shares outstanding exclude the anti-dilutive effect of certain stock options. The options excluded from diluted earnings per share were as follows:
Years ended December 31,
2023 2022 2021
Options excluded 10,587  20,595  6,463